New content added to Mackey Advisors Website

Click here to read an interesting article by Jeff Plungis on credit card companies charging inactivity fees.

Click here to view the PDF of Forefield's 2010 Key Numbers for tax planning. These numbers will help you with:

• Individual tax planning
• Marginal tax planning
• Investment planning
• Education planning
• Retirement planning
• Business planning
• Estate planning
• Protection planning

If you have any questions or would like more information call 859.331.7755

Too big to fail

Yesterday the government decided Citigroup was too big to fail. I woke at four this morning thinking about this. Too big to fail. I guess that means once a company reaches a certain size, regardless of mismanagement, lack of leadership, lack of innovation, poor strategic judgment, or of any of the countless ills possible, it is entitled to a perpetual life.

I understand it would be scary, devastating to thousands of employees and their families and have countless consequences that we cannot predict if Citigroup were to go under.

What I am struggling with is what this really means. Does that mean that we not only have government entitlements, but we also have corporate entitlements? Do the taxpayers pay for both?

What is the scale at which one arrives at “too big to fail?” Who defines this?

How are the CEO’s of “too big to fail” companies held accountable?

The former CEO, Charles Prince received a 12.9 raise in 2007, just last year, to bring his total compensation to $25 million. Click here for the Market Watch 2007 story

Ok, in fairness, Prince lost his job. And most of us would be fine with losing our jobs if our final paycheck was $25 million.

A few people are now talking about forgoing bonuses for top executives as a condition for the government assistance. Which means the government now controls CEO pay in “too big to fail” companies? Read the Reuters story here

I am not saying I have the answers. I do have lots of questions.

New times, new territory. I would love to hear your comments.

May prosperity be yours,
Mackey McNeill, CPA/PFS IAR
President and CEO
Mackey Advisors
www.CultivatingProsperity.com
859-331-7755
Mackey@CultivatingProsperity.com